Minister removed to allow economic 'reset'

The treasury minister has been removed from his post after businesses "lost considerable confidence" in the Manx government over economic matters, the chief minister has said.

In a letter, Alfred Cannan asked Alex Allinson to stand down from the role to allow for a "reset to be undertaken" in the government's approach to the economy.

Infrastructure Minister Michelle Haywood was also removed to allow the government to "pursue a renewed approach" to issues in the department.

The reshuffle - which is set to see changes to a planned minimum wage rise and the roll out of 20mph (32km/h) speed limits - comes a month before the Manx budget and eight months ahead of the House of Keys general election.

Cannan said in making the changes he was "redefining this government's approach to priorities within the remaining term of this administration".

"I am refreshing my Council of Ministers to meet the delivery objectives necessary for the benefit of the island," he said.

After previously serving as education minister and enterprise minister, Allinson became treasury minister in 2022, while Michelle Haywood took up her first ministerial position in infrastructure in 2024.

Allinson and Haywood have been approached for a response.

In the letter to Allinson, the chief minister said that the two had "diverged considerably on a number of policy matters", and the situation was "now too ingrained to recover ground".

Writing to Haywood, he said the roll out of 20mph (32km/h) speed limits in urban areas and the "controversy" surrounding the Local Government Bill were "matters that I now wish to see addressed differently".

Douglas Central MHK Chris Thomas has been appointed treasury minister, while Glenfaba and Peel MHK Tim Crookall has taken over in infrastructure.

Both politicians return to the Council of Ministers after leaving previous ministerial posts.

Thomas said his first priority in the Treasury would be to take a "slower approach to the increase being proposed" to the island's minimum wage.

He also said he would "work with officers to ensure there is a substantial rise in personal allowances at the budget".

The proposed 9.9% increase to the Manx minimum wage, backed by the Department for Enterprise as well as the Treasury, has faced significant push back from island businesses, particularly those in hospitality.

The Local Economy Forum - a lobby group set up by business leaders over concerns about the planned rise from April - accused the government of "actively damaging the island's economy" in its decision making.

The roll out of further 20mph (32km/h) zones in residential areas across the island by the infrastructure department has also seen a backlash during recent times.

Last year, Port St Mary became the first area on the island to have the lower speed limits in place following a public consultation on road speeds, but the scheme had faced criticism that blanket speed limits were being introduced without community feedback.

That resulted in the launch of a phased consultation and roll out process for each area, however, Crookall has now said his "week one" priority would be to pause the scheme.

He also said he would "reset the relationship" with local authorities.

That relationship had been under strain due to a controversial clause in the Local Government Amendment Bill,which the commissioners have said could see functions passed on to them without financial support.

The changes mark the latest in a series of reshuffles during Cannan's administration.

The most recent was in November 2024, when Haywood took on the infrastructure minister post from Crookall, who moved on to take on the newly created minister without portfolio position.

He resigned from that role in September last year, with the position left empty, but has now been re-appointed as infrastructure minister.

Thomas most recently served in the Council of Ministers as infrastructure minister before being asked to step down in 2023 to "speed up reforms" within the department.

He was also sacked as policy and reform minister during the previous administration for voting against the government in Tynwald.

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